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Golden Arrow Signs Letter of Intent to Option Libanesa Silver-Gold Project, Argentina

June 1, 2021

Vancouver, BC / CNW / June 1, 2021 / Golden Arrow Resources Corporation (TSX-V: GRG, FSE: G6A, OTCQB: GARWF), (“Golden Arrow” or the “Company”) is pleased to announce it has entered into a binding letter of intent (“LOI”) with Mirasol Resources Ltd. (TSX-V: MRZ) (“Mirasol”) for an option (the “Option”) to acquire a 75% undivided interest in Mirasol’s Libanesa silver-gold project (“Libanesa”) in the province of Santa Cruz, Argentina. Under the terms of the LOI, Golden Arrow may exercise the Option by incurring certain exploration expenditures and making staged cash payments over six years.   

Libanesa is a drill-ready project hosting several diversified geological, geochemical and geophysical supported drill targets. Based on the work to date, Cerro Plomo is the principal target and is characterized by a mineralized Au/Ag hydrothermal breccia that is exposed at surface, and both chargeability and resistivity geophysical anomalies at depth. Trench results include:

  • 6m at 0.8 g/t Au, 243.8 g/t Ag and 0.4% Pb
  • 10.5m at 0.98 g/t Au, 53.4 g/t Ag and 0.9% Pb
  • 11m at 1.21 g/t Au, 13.5 g/t Ag and 1.4% Pb

Additional targets within Libanesa include the peripheral polymetallic veins at the Libanesa Main prospect; and, the Lagunita prospect, which has reported rock chip values up to 7.2 g/t gold.

“Libanesa presents an excellent opportunity for discovery and provides Golden Arrow with a new exploration entry into this exciting area of Santa Cruz, which hosts multiple high-grade gold and silver mines,” commented Joseph Grosso, Golden Arrow’s Executive Chairman, President and CEO.

About the Libanesa Project

Libanesa is a 14,500 ha Ag-Au (Pb) project, discovered and staked by Mirasol. It is located at the north eastern margin of the Deseado Massif Au-Ag metallogenic province, approximately 70 km west from the port of Puerto Deseado, 40 km northwest of the Cerro Moro Mine operated by Yamana Gold and 100 km northeast of the Don Nicolas mine operated by Cerrado Gold. (See Figure 1: Libanesa location in Santa Cruz Province.)

Libanesa is a drill-ready project hosting several diversified geological, geochemical and geophysical supported drill targets. Based on the work to date, Cerro Plomo is the principal target and is characterized by a mineralized Au/Ag hydrothermal breccia that is exposed at surface, and both chargeability and resistivity geophysical anomalies at depth. Peripheral polymetallic veins at the Libanesa Main prospect represent secondary targets and are supported by base metal +/- Au mineralization. The Lagunita prospect is a third prospective zone, which has reported some encouraging rock chip Au values from more typical low sulfidation type epithermal veins and breccias. This prospect requires additional surface exploration to vector into the potentially better mineralized parts of this extensive vein system, where intermittent vein occurrences, outcropping/subcropping through post mineral cover, have been mapped over a strike length of at least 2.3 km.

The following is a summary of project data, provided by Mirasol and reviewed by Mirasol’s Qualified Person (see Mirasol news releases July 23, 2007, July 21, 2008, February 27, 2009 and October 20, 2009). Readers are advised that Golden Arrow has not completed sufficient due diligence to verify the data or interpretations provided.

Libanesa Main prospect:
The Libanesa Main prospect lies along a dilational northwest structure and within a north-northwest corridor bounded by large-scale transfer faults that are clearly identified by the ground magnetic surveys. (see Figure 2: Libanesa Main structural setting.) The main outcropping geological unit comprises partially welded and massive, crystal-rich, rhyolitic flow tuffs intruded by an andesitic to trachytic dike swarm that displays a radial distribution.

The principal target at Libanesa Main is the Cerro Plomo hydrothermal breccia pipe, which is approximatively 50m in diameter and forms an obvious geomorphic positive relief feature at this prospect. The Cerro Plomo breccia pipe has returned strong Au/Ag mineralization from both rock chip sampling and trench sampling, displaying a geochemical signature characterized by a Ag(±Au)-base metal association (see Table 1, below, as well as Figure 3: Cerro Plomo geology and trench sampling results and Figure 4: Libanesa Main target areas and Au-Ag rock chip geochemistry). A trenching program completed to explore under shallow lacustrine sediments confirmed the continuity of the mineralization, which remains open under a clay pan (dry lake) to the south. Highlighted results from the trench sampling include:

  • 6m at 0.8 g/t Au, 243.8 g/t Ag and 0.4% Pb
  • 10.5m at 0.98 g/t Au, 53.4 g/t Ag and 0.9% Pb
  • 11m at 1.21 g/t Au, 13.5 g/t Ag and 1.4% Pb

These positive geochemical results are coincident with shallow and deep-seated geophysical anomalies below the Cerro Plomo target that are defined by the Magnetotellurics (MT) and Audio MT (AMT) geophysical surveys completed by Mirasol (2009/2010 and 2019), further strengthening the target.

In addition, a series of epithermal polymetallic veins (Bajo Aspero, Anibal, NE Zone), located peripheral and outboard from the Cerro Plomo breccia system, and associated with patchy argillic/pyritic alteration, have returned a strong Ag-Au-Pb-Zn and As-Sb-Te geochemical signature. Notably, the Au values do not correlate well with other metals, but Ag values are strongly correlated with Pb, Cu and Sb (+/-As,Te). This distribution of mineralization suggests the presence of at least two mineralization events related to the polymetallic veins and the Cerro Plomo hydrothermal breccia at the Libanesa Main prospect.

Lagunita Prospect:
The Lagunita prospect, located approximately 6 km north of Cerro Plomo, is a 10 km2 erosional window exposed through the quaternary gravel cover, where reconnaissance prospecting has identified multiple quartz veining and structural breccia occurrences. The local geology is comprised of small outcrops of Jurassic aged fine ash, rhyolitic tuffs, andesitic dykes and minor calcareous rocks. A strong northwest structural trend appears to focus pervasive silicification and emplacement of crystalline, drusy and saccharoidal quartz veinlets. At Lagunita, rock chip geochemistry returned good Au values (see Table 1) with lower Ag values and base metals including Pb, Zn and Cu, thus displaying a more typical low sulfidation epithermal signature and clearly distinguishing the Lagunita veins from the breccias and polymetallic veins located at the Libanesa Main prospect.

Summary of Terms

The transaction contemplated in the LOI is subject to legal and technical due diligence and the finalization of a definitive agreement. Mirasol has granted Golden Arrow a 90-day exclusivity period.

Under the terms of the LOI, Mirasol will grant Golden Arrow an option to earn a 75% interest in Libanesa over six years (the “Option Period”) by:

  • incurring exploration expenditures totaling US$4,000,000
    • US$500,000 per year during the first 2 years; and
    • US$750,000 per year thereafter.
  • making cash payments to Mirasol totaling US$1,000,000
    • US$100,000 to be paid on the 2nd, 3rd and 4th anniversaries;
    • US$250,000 on the 5th anniversary; and
    • US$450,000 on the 6th anniversary.

The initial US$500,000 in exploration expenditures is a firm commitment, but it may be incurred over 24 months instead of 12 months, if the required exploration permits are not in place by October 2021. In addition, Golden Arrow is required to complete a minimum of 2,000m of drilling by the end of the second year. Golden Arrow will be the operator during the Option Period.

Upon completion of the option, Mirasol and Golden Arrow will hold 25% and 75%, respectively, in a participating Joint Venture company holding Libanesa. If either party’s equity interest is diluted below 10%, it will convert to a 2% net smelter return royalty.

Qualified Persons

The technical portions of this news release have been reviewed and approved by Brian McEwen, P.Geol., VP Exploration and Development to the Company and a Qualified Person as defined in National Instrument 43-101.

About Golden Arrow:

Golden Arrow Resources Corporation is a mining exploration company with a successful track record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits. The Company is well leveraged to the price of gold, having monetized its Chinchillas silver discovery into a significant holding in precious metals producer SSR Mining Inc.

Golden Arrow is actively exploring a portfolio that includes a new epithermal gold project in Argentina, a districtscale frontier gold opportunity in Paraguay, a base-metal project in the heart of a leading mining district in Chile and more than 180,000 hectares of properties in Argentina.

The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.

ON BEHALF OF THE BOARD

“Joseph Grosso”
_______________________________
Mr. Joseph Grosso,
Executive Chairman, President and CEO

For further information, please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the Company’s plans for its mineral properties; the Company’s business strategy, plans and outlooks; the future financial or operating performance of the Company; and future exploration and operating plans are forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the impact of COVID-19; risks and uncertainties related to the ability to obtain, amend, or maintain licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations.  Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.